Central Banks Flock to Gold as Global Tensions Rise

Gold prices have surged around $400, or 10%, since August 1, and could experience its best month this century.

The rally is attributed to a combination of factors, including the Federal Reserve's 'dovish hold' on interest rates, weak employment data, and tame inflation figures.

These factors have tempered Fed rate hike expectations and led to a decline in the dollar, making gold more attractive to investors.

Central banks are among those increasing their gold reserves, with net purchases totaling 289 tons in the second quarter, a record high for that period.

A survey by the World Gold Council found that 45% of central bank respondents plan to increase their gold holdings over the next 12 months.